Argo Blockchain PLC Announces December Operational Update

Rhea-AI Summary

Argo Blockchain (LSE:ARB)(NASDAQ:ARBK) has released its operational update for December 2024. The company maintained its Bitcoin mining rate at 1.3 BTC per day, producing a total of 39 Bitcoin during the month. Mining revenue increased to $3.9 million from November's $3.4 million, attributed to higher hashprice and BTC price.

The company reported holding two BTC equivalent as of December 31, 2024. Additionally, Argo's hosting agreement with Galaxy concluded on December 28, 2024. The company's 23,619 S19J Pro machines from the Galaxy site will undergo refurbishment for air-cooled facility compatibility, with Argo currently evaluating alternative hosting locations.

Positive

• Mining revenue increased 14.7% to $3.9 million from $3.4 million in November
• Maintained consistent daily Bitcoin production rate of 1.3 BTC

Negative

• Low Bitcoin holdings of only 2 BTC as of December 31
• Hosting agreement with Galaxy ended, requiring machine relocation and refurbishment
• Uncertainty regarding new hosting location for 23,619 mining machines

Insights

Cryptocurrency Mining Analyst

The December operational update reveals notable metrics in Argo's mining operations. Mining $3.9 million in revenue marks a 14.7% increase from November's $3.4 million, driven by improved hashprice and Bitcoin price appreciation. However, the static daily production of 1.3 BTC signals operational efficiency challenges. The minimal Bitcoin holdings of just 2 BTC equivalent suggests immediate liquidation of mined assets, likely for operational costs and debt servicing.

The termination of the Galaxy hosting agreement for 23,619 S19J Pro miners presents a significant operational risk. The need to refurbish these machines for air-cooled facilities could lead to extended downtime and additional capital expenditure. This transition period will likely impact Q1 2025 mining capacity and revenue generation. The search for alternative hosting sites adds uncertainty to the operational timeline and could affect mining economics through potentially higher hosting costs or less favorable power rates.

Financial Analyst

The operational metrics indicate concerning fundamentals. While the revenue increase to $3.9 million appears positive, it's primarily attributed to external factors (Bitcoin price and hashprice) rather than operational improvements. The static daily Bitcoin production suggests no efficiency gains, while the minimal BTC holdings point to tight liquidity management.

For a company with a market cap of $43.3 million, the operational disruption from the Galaxy hosting agreement termination poses significant risks. The capital requirements for refurbishment and potential new hosting arrangements could strain the already tight balance sheet. This transition period may negatively impact Q1 2025 financial performance and could necessitate additional financing measures.

LONDON, UNITED KINGDOM / ACCESSWIRE / January 7, 2025 / Argo Blockchain plc (LSE:ARB)(NASDAQ:ARBK) is pleased to provide the following operational update for December 2024.

During the month of December, the Company mined 39 Bitcoin ("BTC"), or 1.3 BTC per day, consistent with November's production.

Mining revenue in December 2024 amounted to $3.9 million, an increase from $3.4 million in November 2024 due to the higher hashprice and BTC price realized in December as compared to November. As at 31 December 2024, the Company held two BTC equivalent.

As previously announced, the Company's hosting agreement with Galaxy ended on December 28, 2024. The 23,619 S19J Pros at the Galaxy site will be refurbished so they can be used in an air cooled facility. The Company is currently evaluating alternative sites to rehost the machines.

This announcement contains inside information.

For further information please contact:

Argo Blockchain
Investor Relations	ir@argoblockchain.com
Tennyson Securities
Corporate Broker Peter Krens	+44 207 186 9030
Fortified Securities
Joint Broker Guy Wheatley, CFA	+44 7493 989014 guy.wheatley@fortifiedsecurities.com
Tancredi Intelligent Communication UK & Europe Media Relations	argoblock@tancredigroup.com

About Argo:

Argo Blockchain plc is a dual-listed (LSE: ARB; NASDAQ: ARBK) blockchain technology company focused on large-scale cryptocurrency mining. With a mining facility in Quebec and offices in the US, Canada, and the UK, Argo's global, sustainable operations are predominantly powered by renewable energy. In 2021, Argo became the first climate positive cryptocurrency mining company, and a signatory to the Crypto Climate Accord. For more information, visit www.argoblockchain.com.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

SOURCE: Argo Blockchain PLC

View the original press release on accesswire.com

FAQ

How many Bitcoin did Argo Blockchain (ARBK) mine in December 2024?

Argo Blockchain mined 39 Bitcoin in December 2024, maintaining a daily production rate of 1.3 BTC.

What was Argo Blockchain's (ARBK) mining revenue for December 2024?

Argo Blockchain's mining revenue for December 2024 was $3.9 million, up from $3.4 million in November.

How many Bitcoin did ARBK hold as of December 31, 2024?

Argo Blockchain held two Bitcoin equivalent as of December 31, 2024.

What happened to ARBK's hosting agreement with Galaxy in December 2024?

Argo Blockchain's hosting agreement with Galaxy ended on December 28, 2024, requiring the refurbishment and relocation of 23,619 S19J Pro machines.

How many mining machines does ARBK need to relocate after the Galaxy agreement end?

Argo Blockchain needs to relocate 23,619 S19J Pro mining machines following the end of the Galaxy hosting agreement.